Third-Party Sender Services and Resources

Due to increased regulatory attention and compliance requirements directed toward Third-Party relationships EPCOR to offers the following specific, dedicated resources to aid Third-Party Senders and their ODFIs in understanding and meeting their risk and compliance obligations:

Third-Party Sender Registration

On September 2017 the Third-Sender Registration ACH Rule went into effect. This Rule requires all ODFIs to register with Nacha, those Third-Party Senders whom they originate for. This is a big step in recognizing Third-Party Senders for what they are, valuable and trusted members of the electronic payments ecosystem.

Nacha’s website states "The registration process will promote consistent customer due diligence among all ODFIs, and serve as a tool to support Nacha's continuing efforts to maintain ACH Network quality."

Initial Registration

Initial registration consists of information that the ODFI should already be in possession of. This is:

The ODFI and company contact information

The name and principle business location of the Third-Party Sender

The ODFI routing number used to originate ACH transactions

The Company ID of the Third-Party Sender

Not only must ODFI’s register their principle Third-Party Senders, but they must also register any of that Third-Party Sender’s customers who are also Third-Party Senders (nested Third-Party Senders).

The registration process can be completed online at the Nacha Risk Management Portal. Tutorials on registering your TPS can be located on the Nacha and EPCOR websites.

The first step in compliance with this new ACH Rule is properly identifying Third-Party Sender relationships.

What does a Third-Party Sender look like?

Nacha’s Third-Party Sender Identification Tool is designed to assist ODFIs in identifying Third Party Sender relationships, such as Payroll Companies, CPA Firms and Property Management Firms to name a few.

A Special Forum for Third-Party Senders and ODFIs

The EPCOR Third-Party Sender Forum is now called the TPS/ODFI Roundtable. This forum is open to all EPCOR Associate members and EPCOR ODFIs that originate for Third-Party Senders to allow for a unique space to collaborate on issues important to Third-Party payment processing. It is intended as a opportunity to discuss best practices and voice industry concerns in a friendly safe environment. The Roundtable meets once a month by teleconference. Those interested in learning more about the Roundtable should contact Amy Donaghue.

Third-Party ACH Risk Assessment Service

The Nacha Operating Rules require all participating depository financial institutions, Third-Party Service Providers and Third-Party Senders to conduct a periodic ACH Risk Assessment. We tailor our ACH Risk Assessments for each organization to ensure that risks related to Third-Party Service Providers and Third-Party Senders understand the risks related to ACH origination and have a strong internal control structure in place to appropriately mitigate risks.

Third-Party ACH Consulting Services

Designed to assist Third-Party Service providers and Third-Party Senders after completion of their annual ACH Rules Compliance Audit, the consult is a comprehensive review of current processes coupled with recommendations for improved compliance with the ACH Rules. We assist your organization in designing and implementing ACH compliance procedures and provide tools and resources to assist in your on-going business needs.